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People's Daily on Food Delivery War: No Winners in Price War, Only Innovation Leads to Future
Locked in fierce competition, China's food delivery platforms are rolling out different subsidies and discounts to their users.China's official media, the People's Dail...
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People's Daily on Food Delivery War: No Winners in Price War, Only Innovation Leads to Future
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Locked in fierce competition, China's food delivery platforms are rolling out different subsidies and discounts to their users.

China's official media, the People's Daily, wrote in a commentary that the recent rivalry in instant retail and e-commerce businesses may appear to be a contest of supply chain management or operational capabilities, but it is still a price war in reality.

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While ultra-low prices may bring short-term gains to consumers, merchants, and delivery riders, at the end of the day, they will only lead to irrational consumption, thinner profit margins per order, and a decline in the quality of goods and delivery services.

The commentary further pointed out that price wars produce no winners, and innovation is the only way forward. Through technological and managerial innovation, companies can lower production costs and offer consumers products with higher quality and better value. As internet companies are inherently innovative, they should broaden their horizons to pursue more ambitious goals.

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